On May 12, 2014, Masimo Corporation, through its wholly owned subsidiary
(collectively "Masimo"), completed the purchase of the land and a 213,800 square
foot building located in Irvine, California (the "Property") from Nikken, Inc.
("Nikken"), pursuant to the Agreement of Purchase and Sale and Escrow
Instructions, dated as of November 1, 2013, by and between Masimo and Nikken, as
amended (the "Purchase Agreement"). Masimo's entry into the Purchase Agreement
was previously reported in Masimo's Current Report on Form 8-K filed with the
Securities and Exchange Commission on March 18, 2014. Pursuant to the Purchase
Agreement, the purchase price of the Property was $56.0 million, excluding
adjustments, reimbursements, prorations and credits. Masimo intends to use the
Property primarily as its new corporate and research and development
headquarters.
There is no material relationship between Masimo or any of its affiliates and
Nikken or any of its affiliates outside of the Purchase Agreement.
The foregoing description of the Purchase Agreement is qualified in its entirety
by reference to the full text of the Purchase Agreement, a copy of which was
filed as Exhibits 10.1, 10.2, 10.3, 10.4 and 10.5 to Masimo's Quarterly Report
on Form 10-Q for the fiscal quarter ended March 29, 2014, filed with the
Securities and Exchange Commission on May 1, 2014.